Investing.com – Initial coin offerings have become a useful alternative for entrepreneurs seeking to raise funds, but they also have unlimited potential for fraud, according to a report by France’s stock market regulator.
About €350 million has been raised through ICOs in France thus far, according to the report.
The regulator, known as the AMF, says ICOs use abusive, fraudulent practices to take advantage of unsuspecting investors interested in crypto assets.
The AMF says tighter regulation is needed to protect investors and maintain market integrity, while also ensuring innovation is not hampered.
ICO activity has boomed in recent years, attracting greater regulatory scrutiny.
A recent report by PricewaterhouseCoopers and Crypto Valley said 557 ICOs had raised $13.7 billion through May of this year–twice as much as all of 2017.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.